Infinox Capital is a forex broker that is controlled by the FCA. It took £4,000,000 from investors by taking advantage of the fact that it was regulated.
Even though Infinox Capital is a real forex exchange, its business practices don’t match up with how they are regulated. Together, the people behind Infinox and an Instagram seller ripped off about 1,250 people.
When a claimed successful investment scheme on a “regulated” trading platform went down, investors lost up to £88,000. Most of the people who lost money blamed Gurvin Singh, a self-made forex dealer. Singh told his 170,000 fans about the scheme. He said it was a “copy-trading” service where they could do the same trades he did.
Investors, on the other hand, said he hid losses and made them think the plan was protected by the FCA. He sent all of their money to a broker in the Bahamas.
The Financial Conduct Authority then put out a warning about Gurvin Singh and a few of his coworkers who worked for his ‘GS3’ business. Still, many victims point out that the FCA eventually stopped looking into Singh and Infinox Capital. Also, they don’t have enough money to take the two of them to court.
Jonathan, who put £17,000 into this plan and lost it, told the media that there was only a police investigation going on, but he hasn’t heard anything new about it in months.
When people looked up Infinox Capital, they saw that it is an FCA-regulated company, which is a big reason why they fell for the scam. But they didn’t know that Gurvin and Infinox would send their money to a foreign broker, who is not regulated by the FCA.
How Jay K. Mawji, the owner of Infinox Capital, responded:
When news of the scam came out, Jay K. Mawji, the Director of Infinox Capital, said that they had nothing to do with the Bahamian company. He owns the Infinox name and said that his company had nothing to do with Singh.
He claimed that Inifnox Bahamas was a different company and had nothing to do with them. Investors were complaining to Infinox Capital UK about the multi-million dollar scam, so he had to make these comments. But the company brushed off each complaint by saying it was a different legal company.
Even Anthony Stubbs, a businessman who said he was the CEO of Infinox Bahamas, wouldn’t take any blame. He said Singh was to blame for all the investors’ losses.
But buyers don’t agree with what Jay Mawji says.
They mention that Infinox Capital UK had sent them emails. Also, the contracts said that they would have to use the services of both companies if they signed them. The two businesses were Infinox Bahamas and Infinox UK.
Did Jay Mawji Lie?
Metro UK looked into the situation and found some interesting clues that Jaw Mawji might be lying to protect himself.
They found two workers of Infinox Capital UK who were in charge of many WhatsApp groups for GS3 clients.
Even though the two no longer work for the company, they shared a lot of messages in the group that showed they were in charge of the money. For example, one of them wrote “Best regards, Trading Team” at the end of a message.
Also, they told the buyers to keep track of their money through a certain app. There, they kept getting money into their accounts.
Also, the clients had a legal right to know how to open deals were doing. It would have given them a chance to watch the building grow, with losing positions that didn’t close until the amount hit £3.9 million.
At that point, all of the investors’ money was gone.
Journalists found that these important terms were buried at the end of the contracts in small print. Also, it wasn’t mentioned at all on Infinox’s website.
When Gurvin Singh told the group members they weren’t allowed to see that kind of data and quietly took away those who questioned it, the Infinox Capital workers didn’t do anything.
When some investors started talking about “negative trades” four months into the scheme, the Infinox team did nothing. Singh told them that their money was safe and that once “Brexit was over,” the deals would be profitable.
“They Use Their Offshore Brands to Run Schemes That Are Illegal in the UK”
A trader who used to work for Infinox Capital in a job similar to Gurvin Singh told Metro that Infinox uses the Bahamas firm as a front. It lets them make money from the high-risk plans that the FCA in the UK has banned.
Also, the trader said that the clients he had brought to Infinox Capital UK were sent to a different server in the Bahamas.
So, he said, they were able to make money off of the tax haven’s loose rules.
It’s important to note that Bahamian officials let traders use 16 times more leverage than the FCA in the UK does.
This makes it possible for the forex broker to make a lot more money because it increases the size of the deal.
The trader also said that Infinox Capital Uk told him that the plan was regulated by the FCA. But he soon found out that FCA’s legal limit meant that they couldn’t make enough money from accounts under FCA’s control to pay agents like him.
That’s because, according to FCA rules, Infinox Capital would have had to stop all deals on the accounts when their losses reached 50%.
Metro says that the trader showed them contracts with Infinox Capital UK and that the company’s leaders used the email addresses ‘@infinox.bs’ and ‘@infinox.com’.
More Proof That Infinox Capital UK Was Part of the Million-Dollar Scam:
Metro also found an audio recording, which they had not talked about with the trader.
It was an Infinox Bahamas employee telling them that their sales, finance, customer service, and compliance offices were all based in the UK.
Also, Instagram and YouTube videos show them working in the offices with Sing’s workers.
Infinox Capital’s financial documents show that they made £9 million in 2019-20, of which £1 million came from the “Caribbean market.”
Jay Mawji didn’t say anything about it. He said that the public does not have access to the information.
Also, the fx broker’s most recent public records no longer show that its income comes from all over the world. Now, they say that people from all over the world pay them money.
Robert Berkeley is the head of Infinox Bahamas.
He is also the CEO of Infinox Capital UK. After getting a lot of complaints from the victims, Jay Mawji’s company admitted that the CEO of their UK business is also the director of Infinox Bahamas.
Australian government records say that Robert Berkeley is also the director of a company in Sydney. This business is owned by Infinox Bahamas, and “segregated accounts” are used to keep client money safe.
Also, Robert owns a company in St. Vincent and the Grenadines that holds Infinox Capital Bahamas’ core assets. When reporters called Infinox Bahamas, the company said it had nothing to do with the scheme. It said that the losses were made up on the financial markets.
Many forex scams try to look like real trading and match their customers’ bets with those of other companies, which then steal the earnings.
Also, when reporters asked Infinox Capital Bahamas how they share their gains with others, they didn’t answer.
Also, they didn’t say that they didn’t make around £4,000,000 from the fall of the scam.
It’s important to note that their website says they can give you up to 1:1000 leverage in 2022, which is against the law in the UK.
The shady deal between Infinox Capital and Infinox Bahamas about outsourcing:
When you think about how many offshore companies Robert Berkeley and Jay Mawji own, it makes you wonder, “Are they just shell companies?”
But Jay and Infinox Capital UK said that this was not true. They said that the St. Vincent and Grenadines entity is a defunct company that has never had any assets. Also, it said that they have had an “outsourcing arrangement” with Infinox Bahamas in the past.
But Jay claims that the UK government knows about this plan. They didn’t say that their workers weren’t involved in the scam. Also, the company says that the process of signing up makes it clear to clients who they are working with. On their website and in their sources, they talk about the different endings.
Also, they said that the conclusions of a Financial Ombudsman back up their claim of division. The decision said that a copy-trader could not be thought of as a client of Infinox Capital UK.
But journalists knew that the ombudsman didn’t look at the email about “services offered by Infinox Capital Ltd,” which doesn’t have a risk warning.
Also, the email didn’t say anything about how GS3 clients and Infinox workers talked to each other. This person put their money into a different fund.
What Infinox Capital didn’t tell the reporters was that the ombudsman said the company “likely had some involvement.”
Also, the watchdog was worried about how they ran their business. But because of how FCA defined a client, they couldn’t do anything.
More About Infinox Capital
Infinox Capital has been in business since 2009, and the company says it focuses on giving its customers the most advanced trading technology.
They do business all over the world, and the Financial Conduct Authority, the Financial Sector Conduct Authority, and the Securities Commission of the Bahamas have all given them licenses.
The broker lets its clients trade on the popular MT4 and MT5 systems. These platforms are very famous because their interfaces are easy to use and they have a lot of features.
But the minimum deposit requirement is much higher than what is typical in the business. The least you can put down with Infinox Capital is $100, while most reputable dealers ask for around $10.
The company also has more than 50 exchange pairs and CFDs.
FCA doesn’t let its dealers offer leverage higher than 1:30, but thanks to its offshore accounts, Infinox Capital can offer to leverage up to 1:1000. But you should be careful because their overseas accounts were a big part of the multimillion-dollar scam I just told you about.
Neteller, bank transfers, credit cards, Skrill, and other payment ways are all available.
On paper, Infinox Capital looks like a good forex exchange, but its reviews don’t give me much reason to trust it.
You must read reviews about Infinox Capital
This broker has gotten several 5-star reviews online, but it’s hard to trust them because the broker has a large network of affiliates.
Paid affiliates tend to write a lot of good reviews about their partner company because it helps them make more money.
But what’s scary is how many reports have been made about this broker.
I’ll tell you about a few of them below:
Even though Infinox Capital might seem like a good forex broker based on what it offers and how it lets you trade, its history suggests that it is a scam. The broker has heard from a lot of people who say it is a scam or fake.
In the same way, the company made £4 million when owners in one of its subsidiaries lost all of their money at once. The company didn’t get in trouble with the law because it put all the blame on its own office in another country.
Since this broker’s business and morals are so shady, you should never trade with them.
There are a lot of con artists in the foreign exchange market. OmegaPro, for example, is an MLM scam that pretends to be a forex trading tool. Similarly, Eurotrader has been accused of stealing from its clients many times.
Because of these things, I don’t think it’s a good idea to trade with Infinox Capital.
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